Crude Takes Back Lost Ground – Buying Frenzy Develops Late in Day
Posted on: Jun 6th, 2008 | By Doug Casey | Filed under Oil Investment & Alternative Energy
In the energy market Thursday, crude for July delivery recovered its recent losses, closing at its highest level in a week, at $127.79/barrel, up $5.49, or 4.5%. July reformulated gasoline rocketed 13.45 cents higher, to $3.3345/gallon.
Trichet’s comments were seen as the driving factor.
“Profit taking and/or selling in the crude market over the past week came to sudden halt and buyers stepped back to the plate based on these inflationary comments out of Europe,” wrote Thomas Hartmann, an analyst at Altavest Worldwide Trading.
But there was a technical aspect, too. “The price advance in crude futures accelerated after breaking yesterday’s highs, likely setting off a round of frenzied buying in the last hour of trading,” Hartmann added.
And James Williams, of WTRG Economics, sees “a market divorced from fundamental supply and demand … The decline in the dollar on the possibility of higher European interest rates only explains about 1/4th of [yesterday’s] move,” Williams wrote.
Source: Crude Takes Back Lost Ground – Buying Frenzy Develops Late in Day
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